ECB defends proposal to tackle soured bank loans

Oct 13 (Reuters) - European Central Bank supervisory chief Daniele Nouy defended on Friday a proposal to tackle soured bank debt, arguing that it is both necessary and within the bank’s its mandate.

“The draft Addendum does not establish additional obligations on banks and therefore does not go beyond the existing regulatory framework,” Nouy said in a letter to Antonio Tajani, the president of the European Parliament.

“The draft Addendum falls within the supervisory mandate and powers of the ECB,” Nouy told Tajani after he criticised the proposal.

“In fact, it is an obligation of the ECB, in line with its supervisory mandate, to address this key vulnerability in the European banking system.”